Species Conservation Action Agency 2024–27 business plan

Executive summary

The Species Conservation Action Agency (SCAA, agency) is a board-governed provincial agency dedicated to protecting and recovering designated species at risk (conservation fund species). It receives species conservation charges (charges) into the Species at Risk Conservation Fund (fund) and allocates these funds to support species at risk recovery and protection activities.

The agency, through its Board of Directors (board), determines how best to finance activities for the protection and recovery of conservation fund species. The agency can pool funds from the charges it receives, and any other revenue enabled by the Endangered Species Act, 2007 (ESA) to fund protection and recovery activities that generate benefits for designated conservation fund species beyond what would otherwise be achieved by a proponent acting alone.

This plan is the agency’s inaugural business plan for the three-year fiscal periods 2024–25 to 2026–27. The board, appointed on January 27, 2022, undertook initial work to start-up agency operations, including establishing practices and procedures to implement the agency’s objects as set out in the ESA and to achieve the fund’s purpose. On April 29, 2022, the fund became operational, and proponents began registering their eligible activity and paying charges to the agency. Additionally, the board recruited an interim Chief Executive Officer (CEO), while the recruitment of a permanent CEO was underway.

The business priorities over this three-year period focus on the agency becoming fully operational to meet its legislative purpose, supporting the ministry in increasing revenues to the fund, developing and implementing species-specific funding plans, and ensuring transparency through public reporting.

Overview of the agency

In 2019, the ESA was amended as part of the government’s 10-year review of the legislation, supporting the commitment to improve the effectiveness of the species at risk program. The 2019 changes to the ESA included approaches to offer more innovative and coordinated ways of helping targeted species at risk impacted by activities authorized under the ESA. Amendments to the ESA set out the ability for proponents to pay a species conservation charge into the Species at Risk Conservation Fund (for certain eligible activities) rather than completing beneficial activities themselves. The amendments also enabled the creation of a new board-governed provincial agency, the Species Conservation Action Agency (SCAA, Agency), legally known as the Species at Risk Conservation Trust. The Agency was established in September 2021 by Ontario Regulation (O. Reg.) 651/21 and its main purpose is to manage and administer the Species at Risk Conservation Fund. The agency is to determine how to optimize fund moneys to fund activities for the protection and recovery of conservation fund species.

The SCAA is a board-governed provincial agency, sub-classified as a “Trust” under the Agencies and Appointments Directive (AAD) and an “Other Included Entity” for the purposes of the Ontario Public Service (OPS) Procurement Directive. It operates in accordance with the ESA, O. Reg. 651/21 (Agency Regulation) and  (Five-Year Report by Agency Regulation), a Memorandum of Understanding (MOU) between the Minister of the Environment, Conservation and Parks (minister) and the Chair of the SCAA board, the AAD, and other applicable government directives and requirements, such as the minister’s annual letter of direction to the agency.

On April 29, 2022, O. Reg. 829/21 (Species Conservation Charges Regulation) came into effect, which set out how proponents could select the option to pay a species conservation charge to the agency (fund option) once registering their eligible activity for a conservation fund species. The regulation designates which species at risk are conservation fund species and prescribes how species conservation charges are to be calculated and paid. The fund option is now available for five species that are anticipated to benefit from a strategic and coordinated approach to protection and recovery. These species are Butternut (tree), Bobolink (bird), Eastern Meadowlark (bird), Eastern Whip-poor-will (bird) and populations of Blanding’s Turtle. Payments of species conservation charges related to these species have been accepted and may be re-invested in recovery and protections efforts related to any of the conservation fund species.

Mandate

The agency’s purpose, set out in the ESA, is to manage the Species at Risk Conservation Fund to fulfill its purpose of funding activities that protects or recovers conservation fund species or supports their protection and recovery by:

• receiving species conservation charges and any other revenue enabled by the ESA
• determining activities eligible for support from the fund based on legislative, regulatory and other requirements
• entering into funding agreements for approved activities
• administering and managing the fund
• paying money out of the fund in accordance with the fund’s purpose and legislative, regulatory, and other requirements

Overview of current and future programs and activities

The agency’s purpose as per the ESA is to manage the fund to fulfill its purpose of funding activities that protect or recover conservation fund species or support their protection and recovery.

Fund management

Management of the Species at Risk Conservation Fund prioritizes expenditures on species-specific recovery and protection activities and projects and will minimize operational expenses.

Species-specific funding plans

A priority in fiscal year 2024–2025 is the development of species-specific funding plans for Bobolink and Eastern Meadowlark (birds) and Butternut (tree), followed by funding plan development in fiscal year 2025–26 for Eastern Whip-poor-will (bird) and Blanding’s Turtle. These plans will be posted on the agency’s website prior to any funding of activities to ensure full transparency.

Species-specific fund projects and activities

The development of a method for distributing the funds in accordance with the funding plans is targeted for delivery in quarter 1 (Q3-Q4) of fiscal year 2024–25. The method selected will consider the agency’s obligations for oversight, monitoring and reporting.

Environmental scan

The economy

Development activities, government infrastructure renewal efforts and other activities that otherwise impact species habitats will be influenced by current and future economic conditions. The Ontario Government announced in the 2023 budget an ambitious $184B capital investment over the next 10 years to deliver highway expansion and rehabilitation projects, subway expansion, GO Transit rail network transformation, more hospital beds more child care spaces, school renewals and expansion, and investment and manufacturing attraction in the growing EV market ^{footnote 1[1]} .Other provincial infrastructure commitments include 1.5 million new homes by 2031 and the expansion of electricity generation.

It is anticipated that inflation will continue to fall, with a return to a 2% target rate in the medium term.  Interest rates will follow, although lower interest rates will not likely contribute significantly to improving the weak housing market in Ontario.

Housing affordability will continue to be an issue; however, housing starts and completions are anticipated to continue at multi-year highs. Further supporting the growth in supply of affordable housing, is the federal-provincial decision to remove HST on purpose built rental construction.

It is anticipated that the economy may slow in 2024, followed by a rebound in 2025 and 2026. GDP growth may stabilize at around 1.8%, supported by population growth from high immigration levels and strong labour market growth ^{footnote 2[2] footnote 3[3]}.

Labour market

While an easing of the labour market supply pressures is welcome, it is anticipated that low wage growth within the public sector will continue to impact agencies that compete with municipalities and the private sector for talent. Limitations imposed by compensation restrictions within the public sector may also impact the attraction and retention of talent to the agency.

Environmental policies, regulations and legislation

Since August 2022, the Legislative Assembly of Ontario has introduced legislation reflecting government priorities that could result in an increase in species conservation charge payments into the fund. Such legislation includes Bill 23, More Homes Built Faster Act, 2022  and Building More Mines Act, 2023.  While the government does not have any plans at this time to add species, any change to the conservation fund species will impact fund revenues.

The agency continues to monitor the classification status of conservation fund species on the Species at Risk in Ontario List, to anticipate possible changes to the species at risk designated as conservation fund species. Below is the Committee on the Status of Species at Risk in Ontario (COSSARO) assessment history by conservation fund species:

The following is a summary of the relevant species recovery products. Relevant to the Agency is the requirement for the agency funding plans to be consistent with the Government Response Statements (GRS).

Butternut

• Recovery strategy: executive summary (May 31, 2013)
• Recovery strategy  (May 31, 2013)
• Government response statement (March 14, 2014)
• 5-year review of progress report (2019)

Bobolink

• Recovery strategy: executive summary (May 31, 2013)
• Recovery strategy (May 31, 2013)
• Government response statement (December 15, 2015)
• 5-Year Review of progress report (2020)

Eastern Meadowlark

• Recovery strategy: executive summary (May 31, 2013)
• Recovery strategy (May 31, 2013)
• Government response statement (December 15, 2015)
• 5-Year Review of progress report (2020)

Eastern Whip-poor-will

• Recovery strategy: executive summary (December 5, 2019)
• Recovery strategy (December 5, 2019)
• Government response statement (September 8, 2020)
• 5-year review of progress report [No report – not due until 2025]

Blanding’s Turtle

• Recovery strategy: executive summary (December 5, 2019)
• Recovery strategy (December 5, 2019)
• Government response statement (September 8, 2020)
• 5-year review of progress report [No report – not due until 2030]

Species conservation project

As the agency works to develop species-specific funding plans, identifying and understanding existing recovery and protection efforts that benefit conservation fund species is important, including Ontario’s Species at Risk Stewardship Program and the federal Habitat Stewardship Program for species at risk.

The following projects related to conservation fund species are currently underway in Ontario:

Strategic directions

Government priorities for the Agency are set out in the minister’s October 30, 2023 letter of direction to the agency for fiscal year 2024–2025, which is available publicly. These priorities include the agency becoming fully operational to meet its legislative purpose, supporting the ministry in increasing revenues to the fund, developing species-specific funding plans, distributing funds to species recovery and protection activities and ensuring transparency through public reporting.

Planning assumptions

The following assumptions were used to guide the development of the agency’s business strategies for the 2024–2027 period:

• the agency will ensure inclusive engagement processes to ensure all voices are heard, to inform policies and decision making
• the agency will adopt and operate under an administrative model that minimizes fund expenditures for administration
• total species conservation charges received will vary annually and species at risk designated as conservation fund species may change from time to time. Fund expenditure forecasting must accommodate this
• the agency will have the staffing resources to deliver fully on its mandate, either through agency staffing resources, temporary staffing, outsourced services, or interim support from the ministry
• all systems implemented to support the species conservation charge collection and other funding sources enabled by the ESA, conservation project application, and approval and funds distribution will be supported by nimble, transparent, and timely processes
• financial reserves will be maintained to cover at least one year of administrative and operating expenses
• data and information sharing will inform outcome-based reporting and service delivery improvements
• the Agency’s financial forecast assumes:
  • that the list of conservation fund species will be the same over the three-year forecast period. In the event a species at risk is removed or added as a conservation fund species, the forecast will be updated
  • the agency will reimburse the ministry in fiscal year 2026-2027 for all funds expended on the agency’s behalf, during the initial start-up period

Resources needed to meet goals and objectives

To meet its mandated requirements, the agency requires the following resources:

1. A minimum of 1.5 full-time equivalent employees (FTEs), including a CEO to lead the organization, growing to 2.5 FTEs in fiscal year 2025-2026.
2. An operating budget, funded from the Fund, of approximately $485,000 in fiscal year 2024–2025 to $602,000 in fiscal year 2026-2027.
3. A budget of $400,000 over three years to support the development of species-specific funding plans.

2024–25 initiatives, implementation plan and response to agency mandate letter

Initiatives have been drawn from the agency’s October 30, 2023 letter of direction.

Performance measures and reporting metrics

Performance measures will be (i) established for each activity funded through the fund, (ii) reported in the relevant agency’s annual report(s), and (iii) tracked over time through its annual business plan(s). In the interim, the agency October 30, 2023 letter of direction requires the completion of several activities, listed below:

Reporting metrics

Reporting metrics are drawn from the fiscal year 2022-2023 letter of direction, with additional metrics to be developed with the implementation of the relevant species-specific projects supported through the fund.

1. Number of funded activities aligned with Butternut funding plan.
2. Number of funded activities aligned with Blanding’s Turtle funding plan.
3. Number of funded activities aligned with Easter Whip-poor will funding plan.
4. Number of funded activities aligned with Eastern Meadowlark funding plan.
5. Number of funded activities aligned with Bobolink funding plan.
6. Amount and % of funds distributed to activities aligned with Butternut funding plan.
7. Amount and % of funds distributed to activities aligned with Blanding’s Turtle funding plan.
8. Amount and % of funds distributed to activities aligned with Easter Whip-poor will funding plan.
9. Amount and % of funds distributed to activities aligned with Eastern Meadowlark funding plan.
10. Amount and % of funds distributed to activities aligned with Bobolink funding plan.
11. Amount of habitat restored for conservation fund species.
12. Amount of habitat created for conservation fund species
13. The outcomes of conservation fund species’ protection and recovery activities (TBD).

Risk identification, assessment and mitigation strategies

The purpose of the agency’s risk management plan is to better understand the uncertainties the agency faces and how to tackle those uncertainties, thereby improving the agency’s success in fulfilling its mandate and the key mandated priorities:

1. Become operationally and financially independent.
2. Increase revenues for the fund.
3. Develop and deliver species-specific funding plans.
4. Ensure transparency.

Considered as part of the development of the risk management plan are four business objective lenses ^{footnote 5[5]} :

1. Strategy (high-level goals and objectives).
2. Project (activities and tactics aimed to achieve defined objectives).
3. Operations (effective and efficient use of resources).
4. Continuity (emergency management and contingency planning).

Underpinning this work are clearly articulated foundational documents supporting the agency’s work, including a current MOU, annual mandate letter, relevant legislation and regulations, board policies and bylaws, and government policies and directives. Additional context is drawn from the environmental factors, both internal and external, shared in the agency’s business plan. 

An assessment of the agency’s key risks identified three categories: financial, operating, and strategic.  Each of the categories reflects the risks in the coming years, the likelihood and impact of the risks and mitigation strategies to manage these risks.

Risk assessment

Risk category: financial

Risk category: operational

Risk category: operational

Risk category: strategic

Risk category: strategic

Risk monitoring and reporting

The agency CEO is responsible for ongoing monitoring and reporting of risk factors to the agency’s Board of Directors. As part of the board’s governance and accountability role, the board is responsible for monitoring and assessing the agency’s performance. Review of the agency’s risks will remain a standing board agenda item, under the CEO’s report.

Human resources plan

The agency can hire its own staff, manage its number of full-time equivalents, and set its own job classifications and compensation framework (such as salaries, benefits), within the guidelines established by the province. The initial staffing priority for the agency was recruitment of a CEO, who would subsequently lead the development of the agency staffing plan. To advance key agency priorities, an interim CEO was appointed in fiscal year 2023-2024 (quarter 4) while the recruitment process for the permanent CEO is underway. 

This human resources plan reflects a proposed interim staffing model, recognizing:

• the need to reduce the support required from the ministry, leading to a fully self-supported agency (other than legal services which are provided by the Ministry of the Attorney General)
• the agency requires short-term specialized skills to oversee the development of species-specific funding plans, a fund application process and an accountability framework
• the agency currently does not have a benefits or pension plan solution in place, which may impact the attractiveness of working for the agency. Further impacting the agency’s ability to compete for labour, is the higher compensation levels for some financial and policy-oriented positions in municipalities and the private sector
• the potential interest within the ENGO and broader community to lead an organization whose priorities are aligned with their personal career objectives
• an operations policy requirement to streamline and minimize operations expenses relative to fund expenditures, in this case through a nimble and agile staffing model to adapt to changing priorities and variable annual revenues
• a requirement to comply with all relevant governance requirements and government directives and policies

Operational policy

As noted in both the planning assumptions and the 2024–2027 financial forecast, the agency will adopt and operate under an administrative model that minimizes fund expenditures on administration and operations. To accomplish this, the agency will ensure:

• Lean staffing model—permanent staff will only be hired to fulfill ongoing job duties such as the CEO to lead the organization, a program coordinator to administer the process to distribute funds under the species-specific funding plans, and part-time administrative support 
• Leverage outsourced services—one-time services to establish the funding plans will be outsourced, along with financial administration support, to accommodate the variable needs over the next three years
• Remote business model—as a start-up, it is not clear if the future business model of the agency will expand or contract, given the variability associated with the receipt of species conservation charges. As such, the agency is adopting a prudent remote working model, to minimize operational overhead costs. Cloud computing solutions will be leveraged, guided by IT usage policies that mirror the Ontario governments requirements
• Collaborative and transparent relationship with ministry—the agency will maintain open communication with the ministry to ensure the agency operations and its mandated deliverables fully align with ministry programs and objectives
• Consistent annualized conservation fund distribution—total species conservation charges will vary annually, and species designated as conservation fund species may change from time to time. Fund expenditure forecasting must accommodate this. Given the variability in annual species conservation charge receipts and the impact of the start-up support from the ministry, the agency will set the annual distribution level from the fund at $2.5M from 2024–2027. This will ensure that a reserve remains available for the medium term to smooth distribution levels and to cover the next year’s administration costs
• Annual review of operation policy results—it will be important to annually review the agency’s performance against the objectives set in this policy. This review will be part of the board’s review of the agency’s annual performance results, with changes incorporated in the next year’s business plan update

Financial forecast

The agency’s 2024–2027 financial forecast prioritizes expenditures to develop species-specific funding plans and to distribute the collected funds to projects that address conservation fund species recovery and protection.

As of April 29, 2022, the agency has been receiving payments of species conservation charges into the fund under O. Reg. 829/21. A total of $2,009,753 has been received as of January 23, 2024 from the payment of 60 species conservation charges for only certain conservation fund species.

The 2024–2027 forecast is based on the following assumptions:

• staffing numbers as per the 2024–2027 human resources plan, with 2.5 FTEs in 2024–25 and 2.5 FTEs in the out years
• board per diems as per Agency and Appointments Directive
• repayment of agency start-up costs to the ministry in fiscal year 2026-2027 to a maximum of $702,500
• constraining administrative costs (salary and wages plus administration)
• consistent total annual distribution of funds of $2.5M from 2024–2027

SCAA financial forecast 2024–2027

Initiatives involving third parties

This section lists agency work that will involve third parties, either through procured services or partners delivering projects and activities funded by the fund.

Communications plan

As the agency takes ongoing action to develop the operational components of this new operating entity, the following communications activities will be phased in over the next three years.

Designed to support the delivery of the agency’s mandate, the focus will be on:

• promoting the work and accomplishments of the agency and the initiatives and activities that it supports through the fund
• develop and implement a strategy to increase revenues to the fund from the sources set out in the ESA

Key messages

General

• the Species Conservation Action Agency is an agency responsible for administering and managing the Species at Risk Conservation Fund
• since April 2022, businesses, municipalities, and individuals have had the option to pay a species conservation charge into the Species at Risk Conservation Fund rather than completing certain on-the-ground actions as a condition of their permit, agreement, or conditional exemption under the Endangered Species Act, 2007
• the agency’s mandate is to protect and recover select species at risk and their habitats through innovative investments from the fund
• this approach will help trusted partners, such as Species at Risk Stewardship Program recipients, to engage in projects that benefit conservation fund species underway faster
• the Species Conservation Action Agency is looking forward to beginning funding activities for conservation fund species in fiscal year 2024–2025, which will include developing and publishing funding plans for associated species

Species eligible under the fund

• a small subset of the species that are listed on the Species at Risk in Ontario List (O. Reg. 230/08) are designated as conservation fund species eligible for the fund option and only for eligible activities
• conservation fund species are those anticipated to benefit from a strategic and coordinated protection and recovery approach
• conservation fund species are:
  • Butternut
  • Bobolink
  • Eastern Meadowlark
  • Eastern Whip-poor-will
  • Blanding’s Turtle

Key initiatives in fiscal year 2024–2025

The priority for fiscal year 2024–2025 will be to evolve the agency’s communication channels as the agency becomes a fully functioning, operating entity under the ministry

Priorities will focus on:

• exploring options for establishing an independent website, email account and social channels and implement as appropriate
• ensure the agency is fully compliant with external reporting requirements, as per the agency’s 2023 letter of direction, memorandum of understanding, and the Agencies and Appointments Directive

External communication

Internal communication

Communication tactics will be introduced as the internal structures of the agency are developed and implemented. These may include tools to strengthen agency employee communication within a work-from-home environment, staff-board and agency-ministry communication

Appendix A: letter of direction for the 2024–25 fiscal year

October 30, 2023

Mr. Ian Barrett   
Chair, Species Conservation Action Agency

Dear Mr. Barrett:

Thank you for recently taking on the leadership position as Chair of the Board of Directors (board) of the Species Conservation Action Agency (SCAA). The board has been making progress towards the SCAA becoming operationally independent, including the ongoing acceptance of species conservation charges, the establishment of operational and governance policies, and the completion of the first set of audited financial statements. To further advance and capitalize on these accomplishments, I am eager to share my expectations and priorities for the SCAA in the upcoming 2024–25 period.

In your capacity as Chair, your role is pivotal in guaranteeing that the SCAA fulfills its mandate effectively. It remains crucial that the SCAA's objectives, goals, and strategic undertakings continue to align with the priorities and guidance set forth by the Ontario government by acting in the best interests of the residents of Ontario and consistently delivering value for taxpayers' money.

I expect that you and the board will oversee the Species at Risk Conservation Fund (fund) as set out in the Endangered Species Act, 2007 ESA in a manner that is sustainable, transparent, responsible and adaptable. This approach should be dedicated to restoring, protecting, and maintaining the needs of conservation fund species.

The SCAA’s operational and administrative finances are sustained by the fund and is separate and apart from finances of the Province of Ontario (Province). It remains expected that the SCAA will fully reimburse the Ministry of the Environment, Conservation and Parks (ministry) for any initial startup funding for the SCAA administration and operation costs by the fiscal year 2026–27.

Here are the specific priorities and expectations that I would like to see the SCAA focus on in the upcoming year:

A. SCAA priorities and expectations

1) Become operationally and financially independent

• hire and on-board a permanent CEO
• continue to take steps for the SCAA to become operationally and financially independent of the ministry, as provided in the memorandum of understanding between the SCAA and the ministry (MOU), including managing and administering the fund and developing and implementing operational policies and procedures
• continue to plan and implement resources to carry out the SCAA’s objectives, including developing human resources plans or strategies, as appropriate, to attract and retain qualified employees to the SCAA
• implement the SCAA’s 2024–2027 business plan and associated operational policy and deliver on other reporting requirements including completion of an annual report for 2024–2025 to ensure effective implementation of the SCAA’s objectives. This should include implementing strategies identified in the 2024–2027 business plan and associated operational policy to minimize spending on administrative and operational costs from the fund to ensure the agency is spending funds on high value projects that will support the protection and recovery of conservation fund species

2) Increase revenues for fund

• collaborate with the ministry to identify ways to improve uptake of the fund option by proponents
• explore options to increase the fund's revenues, including increasing donations, to enable the implementation of large-scale province-wide initiatives aimed at protecting and recovering eligible species and their habitats

3) Develop and deliver species-specific funding plans

• work with CEO to develop and finalize species-specific funding plans
• develop a transparent and equitable method for distributing funds in accordance with those plans, while taking into account SCAA obligations for oversight, monitoring, and reporting
• spend funds on projects starting in the fiscal year 2024–2025 that will be beneficial to conservation fund species and ensure that funds are spent within a reasonable time and in accordance with the established species-specific funding plans and 2024-27 business plan
• establish a framework to assess, manage, and quantify progress for conservation fund species

4) Ensure transparency

• SCAA is to maintain transparent and accessible communication with the ministry, stakeholders, and the general public to ensure information is available on the SCAA’s progress and funded activities
• collaborate with the ministry on public communications and to ensure necessary updates are made to the SCAA's website (such as publishing the SCAA annual report)
• the annual report should include a thorough evaluation of the agency's operational and financial achievements, as well as mitigative actions to be taken in case the performance measures and targets outlined in the business plan are not met

B. Provincial government-wide agency commitments

In addition to the previously mentioned expectations, there are also provincial government-wide commitments applicable to board-governed provincial agencies, which the SCAA is expected to fulfill. For more comprehensive information on each of these priorities, please refer to the attached guide. These commitments include direction on:

• competitiveness, sustainability and expenditure management
• transparency and accountability
• risk management
• workforce/labour management
• diversity and inclusion
• data collection, sharing and use
• digital delivery and customer service

The ministry will work with the SCAA to ensure this direction is incorporated into the agency’s business plans, policies, and operations.

Finally, by delivering on these priorities, expectations and complying with provincial-wide commitments, we can help to ensure that the SCAA continues to fulfill its statutory mandate. I look forward to these priorities reflected in the SCAA’s 2024-27 business plan and in ongoing SCAA operations.

I greatly appreciate the support provided by you and your fellow board members. The hard work of the SCAA is instrumental in protecting and recovering species at risk and has a positive impact to the people of Ontario.

Should you have any questions, please feel free to contact my office.

Sincerely,

Andrea Khanjin
Minister of the Environment, Conservation and Parks